If PBBANK really drop to RM5, then there must be something wrong di and the dividend won't be at 0.80 anymore.  Just look at Maybank, after they bought in a few banks, investor start throwing the share as they don't think can receive the same high dividend as previously.

then may i know how much dividend they give on that year??

Actually there are not many choice that we can have after the big merger, I mean local bank.

If really want to have financial stocks, some overseas hardly beaten financial stocks might be a better choice than locally. Just my opinion though.

Wat do u guys think about this? 

For sure it will not be like equine or scomi as the fundamental is still there. But i think it may loose some of its business. One example is government cheque (maybe will use back to maybank).

if that the case why not trying many undervalue cap, like maybank

yes difficult to fall, but isnt impossible, unlike nestle or bat, they never fall one. form klse 1500-->900 point

---

Added on November 9, 2008, 9:31 pmdreamer
yes i believe investment valuation is done by everyone who have gone up and down, depend which group of investor u are, either 1/2 speculation?
that make thing great, i triving growth not dividend.
so valuing stock is important and not a secret.
basically there is always a saying
soros using technique analysis.
buffet using valuation.
who right?
equally good isnt it?

DREAMer
STOCK:

it is difficult to explain in word, it is maths and you compare ureself, check what is average p/e, roe, average earning pershare and dividend,
i found maybank is attractive, with the growth that more or less compare public bank, yes i am not denial public bank is well manage and careful with management, but the space for growth isnt much, i am looking for growth.
eg:
i bought LVS at 5 usd and sold at 13 usd in one week i gain > than 7k usd.

it not word it is a maths, please do ure home work. i cant teach as i am not qualify investment valuation tool.

---

Added on November 10, 2008, 9:45 pmunless maybank had been giving a fake financial report for past 20 yrs then my study is damn wrong.
anyway to solve this problem, i am actually diversify,my financial portfolio, i bought some citigroup at lowest 12usd, hsbc at 88hkd, RBS at 50,

many road lead to rome, so not need to agrue too much of how i got there as long i got there.

As predicted, those treasury share is given to offset no more special dividend this year or lesser dividend ahead.

Actually if Pbbank average purchased treasuries share is above 9.00, then shareholders receiving the share actually is at losing end of the buyback programme. As if those buyback money/cash being channelled as dividend in the first place rather than utlising for buyback then the dividend is much more than the value of treasuries shares shareholders are getting.

Except one issue, treasuries shares won't be taxed while dividend will (if company doesn't have tax credit anymore which prevent them to give tax exempted dividend). But those lower income shareholders won't be taxed even with dividend, so buyback move is more beneficiary on high end income shareholders.

---

Added on January 20, 2009, 8:56 pm

Preserving of cash on anticipation
1. higher NPL ahead
2. lesser loan growth ahead
3. lesser profit quarterly ahead is widely expected.
4. Margin might be shrinking as BLR is expected to slash down while BNM put a lower cap on FD rate, which BNM doesn't allow bank to offer less than 3% on 1 month and 3.5% for 12 months FD at least until now.
5. Difficulty in raising fund in financial market, so cash is valuable for any financial instituition on current environment.

Ooo....scary things happened..... as when ppl said that PBB is a fundamental stock and it it for long term investment...
so what happened today we have a low of 7.15.........

but back to 1997/8 if not mistaken, PBB hit the lowest in its history at 90 plus cents....
and later it bounced back to 2.00 plus plus and slowly marching....towards...3.00
and then later there was a merging between PBbank and PBfinance at 5.00 plus i guesss..
and the the share shoot up till 12.00

and in between this 10 years... those who performing cost averaging method probably still gain today but yet...
if no one sold them at 12.00 plus or above.... they are missing the boat....

they have to raise tier 1 capital to shore up RWCR
market will punish them for doing that , if they dont do it, market will aslo punish them. Benchmark it with DBS, HSBC, MBB, so pbb is a bit late in doing it.
sentiment, look at the sentiment.
loan growth, fee income, NIM all under pressure

Dividend wise, with current BLR so low and -2.2% some more, I really doubt 

hi Dreamer,

Yup for those who bought at 90 plus, they have nothing to lose and only wait to collect dividends...

but ... how bout those enter at the different timing.... e.g. these recent 2-3 years...

Are they gonna cry ...or gonna average down ...

is it because they are in wrong timing to grab it and i believe they probably have done some fundamental analysis and expecting pbb to be a good dividend stock payout... then now they probably have a 30% or 40% lost in their portfolio...

dreamer doesnt care about capital loss, he opt for dividends ... IRR

as i said, dreamer, possible dilution and bleak econ outlook cause the selling .... you might want to wait for a good timing for better DY

dreamer,

if you read the reports carefully, it actually addresses a few issue

1. NIM squeezed, loan growth slows, fee base income reduced, and NPL pressure is greater than last time, eventhough it has the lowest NPL among its peer

2. pbb is trading at 3.x bv, compare to its peers tat are trading 0.8 - 1.x bv; do you think it should enjoy such a high premium; in this deteriorating environment

3. im not sure staff cost would increase their cost not ... you might want to have a look

4. PER , banks look at BV

5. its capital ratio is low , at 6-7% cant really remember, go dig it out. although it has no equity call at the moment; it is going to issue innovative tier 1 hybrid to strengthen its tier 1 capital. Market will punish you whether you do it or not .... and after all these banks have sucked out the liquidity ....

6. sell for reason, look at other anchor banks, they are much affected, why pbb?

quote from a friend:

Public Bank is one of the pillar that supported/cushion KLCI strength for the past years as this stock is a “must own” for all, local and foreign. Its strong asset quality (NPL less than 2%) and conservative management record have render this stock trading at 3x P/BV during peak valuation. However, this premium has started to diminish and its share price hit RM7.30 yesterday. Downgrade from foreign brokers exacerbates the decline while selling pressure build up. CLSA issue a research report, pegging Public Bank at 2.2x P/BV of RM6.20. After a heavy selling and steep fall, Public may find some resting in today’s trading session. While regional and local bank are trading at P/BV of 0.8x – 1.5x, we may ascribe some premium to Public Bank for its track record, pegging them at 2x P/BV will see its stock trading at RM5.68, a more reasonable level for financial institution with excellent history.

---

Added on March 12, 2009, 11:34 pmand yeah, it probably will maintain the payout, but what is the yield .... business contracted, deteriorating econ condition ... look at DY and look at DDM

---

Added on March 12, 2009, 11:37 pmPBB 的loan Portfolio

RESIDENTIAL　PROPERTIES　    26%　    　32.2BIL
NON RESIDENTIAL PROPERTIEs　20％　　　23.8BIL
VEHICLE　　　　　　　　　　　　24％　　　29.3BIL　
WORKING CAPITAL                        16%          18.8BIL
PERSONAL USE　　　　　　　　　6％　　　7.3BIL
OTHERS　　　　　　　　　　　　　8％　　　9.3BIL　　

dreamer, it is just a guide, things change.

Make a good judgement, study it and good luck in your investment.

You can track o1 movement, as it is one of the indicator of foreign money flow to our market.

we can set the entry price as we want, but will it reach that low?
a bird in the hand is worth more than the 2 in the bush

I will be happy with DIY of not less than 6% or anything which is higher than inflation rate.

Xuzen

  so if PBBANK still can maintain RM0.50 div annually...... at current RM7 price, the gross div yield is still around 7% which is not bad.... how much do u think PBBANK's div will shrink this year Cherroy? perhaps need to wait for the Q1 report next month to get some idea?

For dividend stock, the dividend yield will most likely maintained at certain rate, during up or down cycle as the market is very efficient in this. 
eg
PBBANK  Price 10.00 Dividend payout 0.60  Ratio 6%
PBBANK  Price 7.50 Dividend payout 0.45  Ratio 6%

The above are just an example figure.  Unless u r buying at much lower price, don't expect the dividend yield will be higher when the price drop.  Price drop for a reason. 

Who the hell is this Dali ???

I particularly don;t agreed his statement below :-

"My final say on PB, is that its not a stock you want to be holding in a market rally!!! Its a stock you want to be holding in a flat or negative market, its a f***ing defensive stock."

No matter is a rally, flat or negative market, i still hold on to it.

irrespective long or short making money is the ultimate go for everyone, be it trader or investor.
individual preference. in the nut shell no right or wrong.
say PBB is non-other than PBB, from 1000shares balloon to 20000shares since listed, it also possible, no one deny that. Remember there was an article listed all the shares that u keep since inception. Millions in return by keeping just mere 1lot.

my 2sen view, open for discussion.